108th CONGRESS
1st Session
H. R. 2607
To modify the contract consolidation requirements in the Small Business
Act, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
June 26, 2003
Mr. CASE (for himself, Mr. SANDERS, Ms. BORDALLO, and Mr. FROST) introduced
the following bill; which was referred to the Committee on Small Business
A BILL
To modify the contract consolidation requirements in the Small Business
Act, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Small Business Federal Contractor Safeguard
Act'.
SEC. 2. CONTRACT CONSOLIDATION.
(a) DEFINITIONS- Section 3(o) of the Small Business Act (15 U.S.C. 632(o))
is amended to read as follows:
`(o) DEFINITIONS- In this Act the following definitions shall apply:
`(1) CONSOLIDATED CONTRACT; CONSOLIDATION- The term `consolidated contract'
or `consolidation' means a multiple award contract or a contract for goods
or services with a Federal agency that--
`(A) combines discrete procurement requirements from not less than 2 existing
contracts;
`(B) adds new, discrete procurement requirements to an existing contract;
or
`(C) includes 2 or more discrete procurement requirements.
`(2) MULTIPLE AWARD CONTRACT- The term `multiple award contract' means--
`(A) a contract that is entered into by the Administrator of General Services
under the multiple award schedule program referred to in section 2302(2)(C)
of title 10, United States Code;
`(B) a multiple award task order contract or delivery order contract that
is entered into under the authority of sections 2304a through 2304d of
title 10, United States Code, or sections 303H through 303K of the Federal
Property and Administrative Services Act of 1949 (41 U.S.C. 253h through
253k); and
`(C) any other indefinite delivery or indefinite quantity contract that
is entered into by the head of a Federal agency with 2 or more sources
pursuant to the same solicitation.'.
(b) PROCUREMENT STRATEGIES- Section 15(e) of the Small Business Act (15 U.S.C.
644(e)) is amended to read as follows:
`(e) PROCUREMENT STRATEGIES; CONTRACT CONSOLIDATION-
`(1) IN GENERAL- To the maximum extent practicable, procurement strategies
used by the various agencies having contracting authority shall facilitate
the maximum participation of small business concerns as--
`(2) PROCUREMENT STRATEGY REQUIREMENTS WHEN THE VALUE OF A CONSOLIDATED
CONTRACT IS GREATER THAN $2,000,000-
`(A) IN GENERAL- An agency official may not execute a procurement strategy
that includes a consolidated contract valued at more than $2,000,000 unless
the proposed procurement strategy--
`(i) specifically identifies the benefits anticipated from consolidation;
`(ii) identifies any alternative contracting approaches that would involve
a lesser degree of contract consolidation; and
`(iii) includes a specific determination that the proposed consolidation
is necessary and the anticipated benefits of such consolidation justify
its use.
`(B) NECESSARY AND JUSTIFIED- The head of an agency may determine that
a procurement strategy under subparagraph (A)(iii) is necessary and justified
if the monetary benefits of the procurement strategy, including administrative
and personnel costs, substantially exceed the monetary benefits of each
of the possible alternative contracting approaches identified under subparagraph
(A)(ii).
`(C) ADDITIONAL REQUIREMENTS WHEN THE VALUE OF A CONSOLIDATED CONTRACT
IS GREATER THAN $5,000,000- In addition to meeting the requirements under
paragraph (A), a procurement strategy that includes a consolidated contract
valued at more than $5,000,000--
`(i) shall be supported by current market research that demonstrates
that the consolidated contract will result in--
`(II) quality improvements;
`(III) reduction in acquisition cycle times; or
`(IV) better terms and conditions;
`(ii) shall include an assessment of the specific impediments to participation
by small business concerns as prime contractors that result from contract
consolidation;
`(iii) shall specify actions designed to maximize small business participation
as subcontractors, including suppliers, at various tiers under the consolidated
contract; and
`(iv) shall not be justified under paragraph (A)(iii) by savings in
administrative or personnel costs, unless the total amount of the cost
savings is expected to be substantial in relation to the total cost
of the procurement.
`(A) IN GENERAL- If the head of an agency solicits offers for a consolidated
contract, a small business concern may submit an offer that provides for
the use of a particular team of subcontractors for the performance of
the contract (referred to in this paragraph as `teaming').
`(B) EVALUATION OF OFFER- The head of the agency shall evaluate an offer
submitted by a small business concern under subparagraph (A) in the same
manner as other offers, with due consideration to the capabilities of
all of the proposed subcontractors.
`(C) NO EFFECT ON STATUS AS A SMALL BUSINESS CONCERN- If a small business
concern engages in teaming under subparagraph (A), its status as a small
business concern shall not be affected for any other purpose.'.
(c) CONFORMING AMENDMENTS- The Small Business Act (15 U.S.C. 631 et seq.)
is amended--
(A) by striking the subsection heading and inserting the following:
`(j) CONTRACT CONSOLIDATION- '; and
(B) in paragraph (3), by striking `bundling of contract requirements'
and inserting `contract consolidation';
(2) in section 8(d)(4)(G), by striking `a bundled contract' and inserting
`a consolidated contract';
(A) by striking `bundling of contract requirements' and inserting `contract
consolidation'; and
(B) by striking `the bundled contract' and inserting `the consolidated
contract'; and
(4) in section 15(k)(5)--
(A) by striking `significant bundling of contract requirements' and inserting
`consolidated contracts valued at more than $2,000,000'; and
(B) by striking `bundled contract' and inserting `consolidated contract'.
END
